Fast-food chains have been delivering a value message over the past few quarters. McDonald’s has led the way, with CEO Christopher Kempczinski addressing the issue during the chain’s second-quarter earnings call.
“We recognize that consumers’ value perceptions are most influenced by our core menu pricing. We’re working closely and collaboratively with our U.S. franchisees on this opportunity, and we’re developing ideas for how we might address this as an entire system,” he said.
McDonald’s has reintroduced its Everyday Value Menu, added Snack Wraps at $2.99, and offered deals like $1 Sausage McMuffins through its app.
Wendy’s and Burger King have made similar moves because some customers no longer see fast food as a good deal.
“Three in four Americans typically eat fast food at least once a week, but the majority (62%) say they’re eating it less due to rising prices. In fact, 65% of Americans have been shocked by the high price of a fast-food bill in the past six months,” according to a survey of 2,000 Americans from Lending Tree.
Now, Yum Brands’ Taco Bell, a chain that has always mixed value and premium items, has released a new product line designed to increase what customers spend without hurting the brand’s value perception.
Taco Bell adds a new dessert
Fast-food chains want customers to order drinks and dessert because it raises the size of their check and generally improves the margin of the sale. Entrees that use a protein generally cost restaurants more than drinks, desserts, and side dishes.
“By strategically incorporating desserts into their menus, restaurants can increase their average check size per customer. Since desserts typically have a higher profit margin compared to other menu items, they are a profitable way for restaurants to improve sales. In fact, 60 percent of restaurant owners and operators say that offering dessert options helps drive up profits,” Chef’s Store reported.
Taco Bell has already diversified its drink menu to help drive up check size and profit margins. Now, it has added a new dessert, a line of sweet empanadas, to further support this strategy.
“Inspired by the beloved Caramel Apple Empanada, the Chocolate Fudge & Caramel Empanadas bring back the fan-favorite format with a new indulgent twist. Served as two warm, crispy empanadas for $2.99, the duo delivers double the decadence: one filled with salted caramel in a classic crust, the other wrapped in a crisp chocolatey shell filled with rich chocolate fudge, designed to give way to warm, velvety filling in every bite,” QSR Magazine reported.
Beginning March 19, the Chocolate Fudge & Caramel Empanadas join Taco Bell’s Luxe Value Menu for a limited time.
This follows a lesson McDonald’s pioneered decades ago. How many times have you added a sundae, or in more recent years, a McFlurry, to your meal?
That’s a high-margin, low-cost sale for the chain, and if I’ve already made the bad (at least for my health) choice to eat at McDonald’s, I’m likely to add the dessert.
Taco Bell sales have climbed
Yum Brands CEO Christopher Turner spoke about the chain’s growth during its fourth quarter earnings call.
“Really healthy growth in 2025 in Taco Bell U.S. If you dig into it, we had strong same-store sales growth. Our numbers would say we were 5 or more points ahead of the category taking share,” he said.
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The chain has also succeeded in getting customers to spend more money.
“If you look at transaction growth, our data would say we were nearly 5 points ahead of the category. So, bringing more consumers on more occasions to our restaurants. That transaction growth was driven by penetration and frequency,” he added.
Analysts have noted that Taco Bell has a formula that works.
“Taco Bell’s recent success is no accident — it’s smart, targeted marketing. They’ve mastered limited-time offers that create urgency, like the ‘Bajaversary’ for Baja Blast, which pulled in customers and spiked visits,” Paul Drecksler, an e-commerce expert and founder of Shopifreaks, told The Food Institute.
Taco Bell
Dessert offers Taco Bell an opportunity
Getting customers to buy dessert can be very important in improving margin, according to longtime restaurant operator Norman N. Habermann.
“Each incremental sale has a significant profit margin associated with it. While the food cost of serving a drink is only in the 20% to 22% range, the cost of serving a dessert may often be 35% to 40%. But because it was an incremental sale that wasn’t expected, all incremental sales in the restaurant business have a pretty high profit margin,” he told the Los Angeles Times.
The margin can be even higher in fast food because the cost of the ingredients tends to be lower.
“Desserts are a great way to increase average tickets,” Eric Spitz, Knowfat Lifestyle Grille president and co-chief executive, told Fast Casual. “But the menu item has to complement the rest of the menu.”
Upselling customers is part of a broad Taco Bell growth plan.
“The brand is relentlessly innovating for next-generation growth with clear 2030 ambitions, including reaching approximately $3 million in U.S. average unit volumes, expanding to 3,000 international stores, and delivering 25% to 26% U.S. restaurant-level margins,” Turner added.
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